This article proposed coordinated tuning and real-time implementation of power system stabilizer (PSS) with static var compensator (SVC) in multi-machine power system. The design of proposed coordinated damping controller is formulated as an optimization problem, and the controller gains are optimized instantaneously using advanced adaptive particle swarm optimization. Here, PSS with SVC installed in multi-machine system is examined. The coordinated tuning among the damping controllers is performed on the non-linear power system dynamic model. Finally, the proposed coordinated controller performance is discussed with time-domain simulations. Different loading conditions are employed on the test system to test the robustness of proposed coordinate controller, and the simulation results are compared with four different control schemes. To validate the proposed controller, the test power system is also implemented on real-time (OPAL-RT) simulator, and acceptable results are reported for its verifications.